Steel makers set to raise prices of hot-rolled coils
Steel makers are set to raise the prices of hot-rolled coils which are trading at a discount of Rs 5,000 to the import parity price, analysts said .
“Indian mills have raised flat steel prices by Rs 3,500-4,000 per tonne in April 21, which has been absorbed by the market. We believe further hikes are in store in the next few weeks as the Indian HRC prices still trade at a discount of Rs 5,000 per tonne to import parity prices,” Motilal Oswal said in a research report.
Indian spot steel spreads are at record highs and are Rs 1,600/Rs 3,700 per tonne higher than the levels during the fourth quarter of 2020-21 for rebar/HRC, implying a strong industry performance in the first quarter of 2021-11 as well.
Domestic steel inventories continue to slide down which further bodes well for domestic prices.
According to provisional data for March 21 reported by Steelmint, India’s crude steel production rose 7 per cent year on year and 2 per cent month on month to 9.98 mt.
India’s steel consumption grew 41 per cent year on year (on a low base of -34 per cent).
However, the same declined 6 per cent month on month to 8.74mt in March 21 as companies looked to exports to benefit from strong global steel prices.
The cement industry has hiked prices again in April after the hikes in March. Prices have been raised by Rs 20-30 per bag month on month in east India and by Rs 5-10 per bag in other regions.
Demand remains strong, particularly in the East.